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In 2006, the U.S. deficit reached a record since Americans necessitate more goods from China, more oil from different foreign sources and greater vehicles – Japan. Yes, Japanese automakers are important factors that caused the U.S. deficit 2006.

This fact has fueled the Detroit automakers and their allies to urge the Bush Administration to act on the issue with the position aggressively against the Japanese currency. This outcry is based on the fact that Detroit automakers have been weakened by the Japanese automakers.

According to figures released by the Commerce Department, the U.S. deficit increased 6.5 percent last year to 763.6 billion U.S. dollars. This marked the fifth consecutive year of deficit increases. The trade deficit with China also rose 15 percent to 232.5 billion U.S. dollars. The dependence of foreign oil reached 302.5 billion U.S. dollars from 252 billion U.S. dollars a year ago.

With regard to the import of vehicles, cars, trucks and auto parts accounted for 149.4 billion U.S. dollars of U.S. deficit for 2006. The figure is 6 percent above 2005 figures. Imports auto parts from Japan also rose 14 percent to 60.2 billion U.S. dollars. The significant increase is attributed to increased car sales Japanese and trucks, which were up 23 percent to 2.1 million vehicles. The leading car manufacturer that increased the deficit is Toyota Motor Corporation and its divisions – Lexus and Scion.

"The consequences of these persistent and massive deficits include not only failed businesses, displaced workers, lower real wages and rising inequality, but also permanent devastation of our communities, "said the letter from the House, Nancy Pelosi, D-Calif., And Rep. Sander Levin, D-Royal Oak, among others.

Toyota's second largest automaker in the world, also is the eighth company largest worldwide. Last year, the total revenue of the automaker totaled 185 billion U.S. dollars. This is one reason why analysts industry predict that Toyota will take over General Motors as the world's largest automaker anytime this year. Toyota's goal for 2007 is to produce 9.4 million vehicles to compete with GM's production.

Toyota has established a solid reputation for quality worldwide. Besides Japan and the United States, Toyota has built manufacturing and assembly plants in Australia, Canada, Indonesia, Poland, South Africa, Turkey, the United Kingdom, France, Brazil and more recently Pakistan, India, Argentina, Czech Republic, Mexico, Malaysia, Thailand, China, Vietnam, Venezuela and the Philippines.

The manufacturer automaker has invested considerable amount of research into cleaner-burning vehicles such as hybrids with its Hybrid Synergy Drive. Furthermore, Toyota has successfully tested its new RAV4 way power by hydrogen fuel cells.

Other divisions of Toyota also recorded positive stages in the industry. Its luxury brand Lexus, which began in the U.S. in 1989, has expanded to Europe and Oceania. Lexus vehicles are sold in over 40 countries around the world. The division also is working to improve its position in the U.S. auto market. JD Power and Associates, a consumer ratings company, has appointed an automotive brand Lexus more reliably for 12 consecutive years. In 2006, Consumer Reports also named Lexus the most reliable brand in its survey. Lexus is to nurture permanently from its commitment to quality, which may be reflected in its catalog cold air intake, sophisticated machines, and alignment impressive.

Scion, other division of Toyota, is famous for its lineup. Scion xA and xB, which are powered by a 1.5L DOHC I4 engine, are well accepted in the territory. Scion tC, released in 2004, also comes with plenty of promises.

Industry analysts agree that Toyota, Honda and Nissan are making an eminence gradually improving in the United States.

About the Author:

Given her background on cars as an auto insurance director, Lauren Woods finds the world of cars to be constantly changing.

Article Source: ArticlesBase.com – Japanese Automakers Boost US 2006 Deficit

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